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We experimentally investigate multiple notions of equity in ultimatum bargaining with asymmetric outside options. Building on the generalized equity principle formulated by Selten (1978), we derive three different equity rules that can explain 43% of all offers. Our within-subject design further...
Persistent link: https://www.econbiz.de/10013074889
Theoretical research on claims problems has concentrated on normative properties and axiomatizations of solution concepts. We complement these analyses by empirical evidence on the predictability of three classical solution concepts in a bankruptcy problem. We examine both people's impartial...
Persistent link: https://www.econbiz.de/10013319305
We study experimentally the effect of bargaining power in two sequential mechanisms that offer the possibility to trade at a fixed price before an auction. In the "Buy-It-Now" format, the seller has the bargaining power and offers a price prior to the auction; whereas in the "Sell-It-Now"...
Persistent link: https://www.econbiz.de/10013009500
In his classic article "An Essay on Bargaining" Schelling (1956) argues that ignorance might actually be strength rather than weakness. We test and confirm Schelling's conjecture in a simple take-it-or-leave bargaining experiment where the proposer can choose between two possible offers. Option...
Persistent link: https://www.econbiz.de/10013118529
Two-tier bargaining structures, in which plant-level wage negotiations supplement industry-level wage setting, are …
Persistent link: https://www.econbiz.de/10013049733
negotiations take place. We show that, in the absence of any distortion, sector-level bargaining ought to be less efficient than …
Persistent link: https://www.econbiz.de/10012779104
International climate negotiations have been troubled by mutual mistrust. At the same time, a hope seems to prevail …
Persistent link: https://www.econbiz.de/10013026868
negotiations following the production. By means of a laboratory experiment, we systematically investigate their role for the whole …
Persistent link: https://www.econbiz.de/10013139946
In this article, we use a stylized model of the labor market to investigate the effects of three alternative and well-known bargaining solutions. We apply the Nash, the Egalitarian and the Kalai-Smorodinsky bargaining solutions in the small firm's matching model of unemployment. To the best of...
Persistent link: https://www.econbiz.de/10013138265
The paper provides a theoretical foundation for the empirical regularities observed in estimations of wage consequences of overeducation and undereducation. Workers with more education than required for their jobs are observed to suffer wage penalties relative to workers with the same education...
Persistent link: https://www.econbiz.de/10013096772